IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v185y2017ip1p895-915.html
   My bibliography  Save this article

A conceptual framework for the analysis of the effect of institutions on biofuel supply chains

Author

Listed:
  • Moncada, J.A.
  • Lukszo, Z.
  • Junginger, M.
  • Faaij, A.
  • Weijnen, M.

Abstract

The economic performance of biofuels supply chains depends on the interaction of technical characteristics as technological pathways and logistics, and social structures as actor behavior, their interactions and institutions. Traditional approaches focus on the technical problems only. Little attention has been paid to the institutional analysis of biofuel supply chains. This paper aims to extend the analysis of the effect of institutions on the emergence of biofuel supply chains by developing a conceptual framework that combines elements of complex adaptive systems, (neo) institutional economics and socio-technical systems theory. These elements were formalized into an agent-based model. The proposed method is illustrated by a case study on a biodiesel supply chain in Germany. It was found that the patterns in production capacity result from investors basing their decisions on optimistic perceptions of the market development that increase with a favorable institutional framework. Conversely, patterns in biodiesel production cannot be completely explained by this mechanism. The proposed framework assisted the model conceptualization phase and allowed the incorporation of social structures into the agent-based model. This approach could be developed further to provide insights on the effect of different future deployment strategies on bioenergy systems emergence and development.

Suggested Citation

  • Moncada, J.A. & Lukszo, Z. & Junginger, M. & Faaij, A. & Weijnen, M., 2017. "A conceptual framework for the analysis of the effect of institutions on biofuel supply chains," Applied Energy, Elsevier, vol. 185(P1), pages 895-915.
  • Handle: RePEc:eee:appene:v:185:y:2017:i:p1:p:895-915
    DOI: 10.1016/j.apenergy.2016.10.070
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030626191631515X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
    2. Sorda, Giovanni & Banse, Martin & Kemfert, Claudia, 2010. "An overview of biofuel policies across the world," Energy Policy, Elsevier, vol. 38(11), pages 6977-6988, November.
    3. Wang, Xiaolei & Ouyang, Yanfeng & Yang, Hai & Bai, Yun, 2013. "Optimal biofuel supply chain design under consumption mandates with renewable identification numbers," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 158-171.
    4. Crawford, Sue E. S. & Ostrom, Elinor, 1995. "A Grammar of Institutions," American Political Science Review, Cambridge University Press, vol. 89(3), pages 582-600, September.
    5. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    6. Ryan, Lisa & Convery, Frank & Ferreira, Susana, 2006. "Stimulating the use of biofuels in the European Union: Implications for climate change policy," Energy Policy, Elsevier, vol. 34(17), pages 3184-3194, November.
    7. Ebadian, Mahmood & Sowlati, Taraneh & Sokhansanj, Shahab & Townley-Smith, Lawrence & Stumborg, Mark, 2013. "Modeling and analysing storage systems in agricultural biomass supply chain for cellulosic ethanol production," Applied Energy, Elsevier, vol. 102(C), pages 840-849.
    8. Challet, Damien & Marsili, Matteo & Zhang, Yi-Cheng, 2001. "Stylized facts of financial markets and market crashes in Minority Games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 294(3), pages 514-524.
    9. Li, Gong & Shi, Jing, 2012. "Agent-based modeling for trading wind power with uncertainty in the day-ahead wholesale electricity markets of single-sided auctions," Applied Energy, Elsevier, vol. 99(C), pages 13-22.
    10. Kaup, Felix & Selbmann, Kirsten, 2013. "The seesaw of Germany's biofuel policy – Tracing the evolvement to its current state," Energy Policy, Elsevier, vol. 62(C), pages 513-521.
    11. Robinson, Scott A. & Rai, Varun, 2015. "Determinants of spatio-temporal patterns of energy technology adoption: An agent-based modeling approach," Applied Energy, Elsevier, vol. 151(C), pages 273-284.
    12. Balmann, Alfons, 1997. "Farm-Based Modelling of Regional Structural Change: A Cellular Automata Approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 85-108.
    13. Ulmanen, Johanna H. & Verbong, Geert P.J. & Raven, Rob P.J.M., 2009. "Biofuel developments in Sweden and the Netherlands: Protection and socio-technical change in a long-term perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1406-1417, August.
    14. Kleinhanss, Werner & Offermann, Frank & Butault, Jean-Pierre & Surry, Yves R., 2011. "Cost of production estimates for wheat, milk and pigs in selected EU member states," Thuenen Working Papers 118867, Johann Heinrich von Thuenen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.
    15. Maarten Ottens & Maarten Franssen & Peter Kroes & Ibo Van De Poel, 2006. "Modelling infrastructures as socio-technical systems," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 2(2/3), pages 133-145.
    16. Demirbas, Ayhan, 2011. "Competitive liquid biofuels from biomass," Applied Energy, Elsevier, vol. 88(1), pages 17-28, January.
    17. Altman, Ira J. & Sanders, Dwight R. & Boessen, Christian R., 2007. "Applying Transaction Cost Economics: A Note on Biomass Supply Chains," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(1), pages 1-8.
    18. Franco Malerba & Richard Nelson & Luigi Orsenigo & Sidney G. Winter, 2001. "History-Friendly Models: an Overview of the Case of the Computer Industry," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 4(3), pages 1-6.
    19. Kleinhanß, Werner & Offermann, Frank & Butault, Jean-Pierre & Surry, Yves, 2011. "Cost of production estimates for wheat, milk and pigs in selected EU member states," Arbeitsberichte aus der vTI-Agrarökonomie 07/2011, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    20. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2010. "A review of computer tools for analysing the integration of renewable energy into various energy systems," Applied Energy, Elsevier, vol. 87(4), pages 1059-1082, April.
    21. Quispe, César A.G. & Coronado, Christian J.R. & Carvalho Jr., João A., 2013. "Glycerol: Production, consumption, prices, characterization and new trends in combustion," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 475-493.
    22. Amineh Ghorbani & Pieter Bots & Virginia Dignum & Gerard Dijkema, 2013. "MAIA: a Framework for Developing Agent-Based Social Simulations," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 16(2), pages 1-9.
    23. Kuznetsova, Elizaveta & Li, Yan-Fu & Ruiz, Carlos & Zio, Enrico, 2014. "An integrated framework of agent-based modelling and robust optimization for microgrid energy management," Applied Energy, Elsevier, vol. 129(C), pages 70-88.
    24. Zhang, Jun & Osmani, Atif & Awudu, Iddrisu & Gonela, Vinay, 2013. "An integrated optimization model for switchgrass-based bioethanol supply chain," Applied Energy, Elsevier, vol. 102(C), pages 1205-1217.
    25. Riccardo Boero & Marco Castellani & Flaminio Squazzoni, 2004. "Micro Behavioural Attitudes and Macro Technological Adaptation in Industrial Districts: an Agent-Based Prototype," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 7(2), pages 1-1.
    26. De Laporte, Aaron V. & Weersink, Alfons J. & McKenney, Daniel W., 2016. "Effects of supply chain structure and biomass prices on bioenergy feedstock supply," Applied Energy, Elsevier, vol. 183(C), pages 1053-1064.
    27. Vukašinović, Vladimir & Gordić, Dušan, 2016. "Optimization and GIS-based combined approach for the determination of the most cost-effective investments in biomass sector," Applied Energy, Elsevier, vol. 178(C), pages 250-259.
    28. Chen, Xiaoguang, 2016. "Economic potential of biomass supply from crop residues in China," Applied Energy, Elsevier, vol. 166(C), pages 141-149.
    29. Osmani, Atif & Zhang, Jun, 2014. "Economic and environmental optimization of a large scale sustainable dual feedstock lignocellulosic-based bioethanol supply chain in a stochastic environment," Applied Energy, Elsevier, vol. 114(C), pages 572-587.
    30. Bale, Catherine S.E. & Varga, Liz & Foxon, Timothy J., 2015. "Energy and complexity: New ways forward," Applied Energy, Elsevier, vol. 138(C), pages 150-159.
    31. Bomb, Christian & McCormick, Kes & Deurwaarder, Ewout & Kaberger, Tomas, 2007. "Biofuels for transport in Europe: Lessons from Germany and the UK," Energy Policy, Elsevier, vol. 35(4), pages 2256-2267, April.
    32. Stephen Schneider & William Easterling & Linda Mearns, 2000. "Adaptation: Sensitivity to Natural Variability, Agent Assumptions and Dynamic Climate Changes," Climatic Change, Springer, vol. 45(1), pages 203-221, April.
    33. Genus, Audley & Mafakheri, Fereshteh, 2014. "A neo-institutional perspective of supply chains and energy security: Bioenergy in the UK," Applied Energy, Elsevier, vol. 123(C), pages 307-315.
    34. Hector M. Nuñez & Hayri Önal & Madhu Khanna, 2013. "Land use and economic effects of alternative biofuel policies in Brazil and the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 487-499, July.
    35. Christensen, Adam & Hobbs, Benjamin, 2016. "A model of state and federal biofuel policy: Feasibility assessment of the California Low Carbon Fuel Standard," Applied Energy, Elsevier, vol. 169(C), pages 799-812.
    36. John F. Padgett & Doowan Lee & Nick Collier, 2003. "Economic production as chemistry," Industrial and Corporate Change, Oxford University Press, vol. 12(4), pages 843-877, August.
    37. van Eijck, Janske & Batidzirai, Bothwell & Faaij, André, 2014. "Current and future economic performance of first and second generation biofuels in developing countries," Applied Energy, Elsevier, vol. 135(C), pages 115-141.
    38. Samsatli, Sheila & Samsatli, Nouri J. & Shah, Nilay, 2015. "BVCM: A comprehensive and flexible toolkit for whole system biomass value chain analysis and optimisation – Mathematical formulation," Applied Energy, Elsevier, vol. 147(C), pages 131-160.
    39. Hoefnagels, Ric & Resch, Gustav & Junginger, Martin & Faaij, André, 2014. "International and domestic uses of solid biofuels under different renewable energy support scenarios in the European Union," Applied Energy, Elsevier, vol. 131(C), pages 139-157.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moncada, J.A. & Junginger, M. & Lukszo, Z. & Faaij, A. & Weijnen, M., 2017. "Exploring path dependence, policy interactions, and actor behavior in the German biodiesel supply chain," Applied Energy, Elsevier, vol. 195(C), pages 370-381.
    2. Kim, Serena Y., 2020. "Institutional arrangements and airport solar PV," Energy Policy, Elsevier, vol. 143(C).
    3. Moncada, J.A. & Verstegen, J.A. & Posada, J.A. & Junginger, M. & Lukszo, Z. & Faaij, A. & Weijnen, M., 2018. "Exploring policy options to spur the expansion of ethanol production and consumption in Brazil: An agent-based modeling approach," Energy Policy, Elsevier, vol. 123(C), pages 619-641.
    4. Sun, Huaping & Edziah, Bless Kofi & Sun, Chuanwang & Kporsu, Anthony Kwaku, 2019. "Institutional quality, green innovation and energy efficiency," Energy Policy, Elsevier, vol. 135(C).
    5. Yazan, Devrim Murat & Fraccascia, Luca & Mes, Martijn & Zijm, Henk, 2018. "Cooperation in manure-based biogas production networks: An agent-based modeling approach," Applied Energy, Elsevier, vol. 212(C), pages 820-833.
    6. Kaiyan Luo & Xingping Zhang & Qinliang Tan, 2018. "A Co-Opetition Straw Supply Strategy Integrating Rural Official Organizations and Farmers’ Behavior in China," Energies, MDPI, Open Access Journal, vol. 11(10), pages 1-17, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:185:y:2017:i:p1:p:895-915. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.